Full and final settlement calculation includes the last month’s salary of the employee or any previous pending salaries and other earnings such as leave encashment, gratuity, bonus, incentives, etc, and deductions such as salary advances, loans, recoveries, etc.
In general, companies hold the last month’s salary of the employee and it will be settled with the full and final settlement.
Full & Final Settlement Formats in Excel
Download these simple Full and final settlement calculation formats in Excel with auto calculations.
What does full and final settlement includes
|Last month salary||Other earnings||Deductions|
|Basic wage||Leave encashment||EPF|
|Conveyance allowances||Professional tax|
|Medical allowances||Notice pay|
Full & Final Settlement FAQs
When will Full and Final settlement will be done
F&F process will be done when the employee resigns and his resignation was accepted by the employer.
The full and final settlement process will start after the last working date of the employee and the final amount will be credited into the bank account of the employee after the regular salary payment date. (Maybe after 10-15 days, it depends on the company)
Required documents for full and final settlement
The employee has to submit no due certificate format approved by each department in the organization.
What if employer is not processing full and final settlement
If an employer fails to settle the full and final settlement of the employees then they are eligible for legal action, in case the employee approaches the concerned labour department.
Is gratuity a part of full and final settlement
Yes, gratuity is part of employee full and final settlement. If your company is covering under payment of gratuity act 1972 they you will get gratuity during full and final settlement.
How full and final settlement amount will be paid
Some companies pay this amount directly into the bank account of the employee and some companies issue a cheque on the name of the employee.
- How to write full & final settlement email to HR
- Full and final settlement rules
- Employee acceptance letter for full and final settlement
- Reminder letter for full and final settlement to employer